How to Money Ask HTM - Moving Beyond the S&P, Investing for a Down Payment, & Lump Sum Number Crunching #910
Nov 25, 2024
Listener questions kick off lively discussions, diving into retirement payment choices between lump sums and monthly pensions. The hosts offer personal investing insights and explore smart strategies for home down payments. Investing in the S&P 500 is examined, alongside the tax implications of pension options. They emphasize the importance of making intentional financial decisions while enjoying a unique breakfast beer. The episode blends practical advice with engaging stories, making complex financial matters more accessible.
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Episode notes
Risk and Nest Egg
- Having a large nest egg allows for more aggressive investing due to a greater ability to weather market downturns.
- A higher risk appetite combined with a long retirement horizon makes taking a lump sum potentially more lucrative.
Lump Sum vs. Pension
- Run the numbers to compare lump sum vs. pension using a rate of return calculator.
- Consider factors like risk tolerance, financial buffer, and spending flexibility.
Down Payment Investing
- Lock in high CD rates for a down payment if the timeline is fixed (3-4 years).
- Consider investing down payment funds in the market if your home buying timeline is flexible (4-5+ years).